CALIFORNIA EMERGING TECHNOLOGY FUND Mission

CALIFORNIA EMERGING TECHNOLOGY FUND

2015 Statewide Survey Results

Digital Divide is Greatest for the Disadvantaged 2015 Annual Survey Percentage of Californians with Broadband at Home  65% of Households Earning Less Than $20,000 a Year (16% by smart phone only – 35% not connected)  63% of Households with Spanish-Speakers (21% by smart phone only – 37% not connected)  59% of People with Disabilities (8% by smart phone only – 41% not connected)  57% of Adults Age 65 or Older – Seniors (1% by smart phone only – 43% not connected)  52% of Non-High School Graduates (18% by smart phone only – 48% not connected)

Preview of 2016 Annual Survey Progress and Remaining Challenges Broadband Adoptions for Low-Income Households Low-Income HouseholdComputing DeviceSmartphone OnlyTotal 2015 Annual Survey- Less Than $20,00049%16%65% $20,000 - $40,00066%10%76% 2016 Annual Survey Less Than $20,00043%25%68% $20,000 - $40,000064%19%83% Federal Poverty Level Less Than 138% FPL48%26%74% More Than 138% FPL80%9%89%

All Customers Online: Benefits To Utilities  Transaction costs for utility will decrease for billing and communications; smaller carbon footprint.  Low-income customers will have equal access to emergency notification and information.  Low-income customers will have equal access to products and services that require Internet access.  Low-income customers can use information from smart meters to manage their usage.  Low-income customers can pay bills online when cash is available without having to spend time and money to pay bills in person.

General Framework for Pilots Utility-CBO-CETF Partnership Agreement  Utility identifies CBO partner(s) to design pilot: CBOs experienced in outreach and adoptions.  Utility sends letters to low-income customers about available affordable offers (rolling distributions).  CETF trains CBO(s) on how to do adoption.  CBO(s) assist customers select an affordable offer, become digitally literate, and secure an appropriate computing device. Utility funds on performance.  Utility or CBO may involve a call center or provider.  Utility staff need not handle calls or be an expert on broadband adoption.

Affordable Broadband Offers Increasing Choices and FCC Lifeline  Basic Internet$72 Hot Spot, $10 per month No Eligibility Requirements  Comcast $10 per month ( Free Modem/Router) National School Lunch Program  AT&T $10 per month ( Free Modem Only) CalFresh Enrollment - $5 per month if only 5 Mbps Available  Frontier$13.99 per month with Lifeline subscription ( Free Modem/Router)  Charter $14.99 per month (Free Modem Only)

Update on Energy Utility Collaboration  SMUD-CFILC Partnership  90,000 letters: 4,055 contacts (4.5% response rate); 1,021 adoptions (25% of contacts).  SCE- CFILC Pilot  10,000 letters to PWD: 594 calls; 38 adoptions; 35 inquiries from currently unserved areas.  Follow up with Program Manager and SCE COO.  SDG&E Pilot Planning  LADWP Interest and Intent  PG&E and SCG To Be Engaged

 Utilities need encouragement, focus, and reinforcement.  CPUC Commission and staff need support.  Policymakers need understanding and education about the importance of getting all customers online.  Letter from LIOB  LIOB Workshop with IOUs  Briefings with Policymakers Low Income Oversight Board Voice and Leadership are Pivotal

CALIFORNIA EMERGING TECHNOLOGY FUND